Sam Walton

Topics: Leadership, Management, Wal-Mart Pages: 6 (1836 words) Published: February 29, 2012
Case Abstract
This case discusses the entrepreneurial skills and visionary leadership of Sam Walton, the founder of Wal-Mart. It examines his contribution in accelerating the growth of retailing industry. It explains how Walton transformed Wal-Mart, a start-up in the 1950s, into a multi-billion dollar global retailing industry giant. The case details the beliefs, philosophies and value system of Walton. After analyzing the case, I have found Sam Walton’s Visionary leadership, and the secret success story of the great leader. I can figure the leadership successfulness of Sam Walton’s by the below mentioned graphical way:

The case examines the best practices initiated by Walton for Wal-Mart in providing excellent customer service, pricing its products and managing human resources. Finally, the case examines Walton's management style and discusses the growth & the success story of Wal-Mart.

Question 1: What are the major reasons for Wal-Mart’s phenomenal success? Explain those reasons in detail. Answer to the question number 1:
1) Comparatively low Price: There are lots of things that makes Wal-Mart successful but one very important item that makes them successful is their constant low prices, this is what the owner prized his product prices low. They try to keep their prices within limit for everyday people. They keep their suppliers knowing what they expect be it either they sell to Wal-Mart at cheap prices or they sell Wal-Mart better quality items. 2) Suitable Locations: Another way that Wal-Mart tries to stay successful is by watching where they spend their investments. Be it the way, they are keeping their stores cool in the summer or the way they are heating the stores in the winter. They pinch dollars every wehre that they can, so they can be successful. 3) Uses of internet: As for what Wal-Mart succeeded from the outcome, the only thing I can seen is when Wal-Mart tried to use the internet to broadcast what they have, what great deals they have going on for the week, and another great option was for customers to be able to buy merchandise online. 4) Dedication of the Workers: Wal-Mart is part of the growth mindset, because no matter what obstacles were put in their way they worked hard to overcome them. They would see items not work out to their advantage and try to fix the problem and resolve it. 5) Unique inventory system: Wal-Mart has invested heavily in its unique cross-docking inventory system. Cross docking has enabled Wal-Mart to achieve economies of scale which reduces its costs of sales. With this system, goods are continuously delivered to stores within 48 hours and often without having to inventory them 6) Own transportation system: Company owned transportation system also assists Wal-Mart in shipping goods from warehouse to store in less than 48 hours. This allows Wal-Mart to replenish the shelves 4 times faster than its competition. 7) MIS: Wal-Mart owns the largest and most sophisticated computer system in the private sector. It uses a MPP (massively parallel processor) computer system to track stock and movement which keeps it abreast of fast changes in the market. Information related to sales and inventory is disseminated via its advanced satellite communications system. 8) Good Purchasing Agents: Wal-Mart has leveraged its volume buying power with its suppliers. It negotiates the best prices from its vendors and expects commitments of quality merchandise. The purchasing agents of Wal-Mart are very focused people. 9) “Buy America” Policy: Sam Walton received national attention through his "Buy America" policy. Through this plan, Wal-Mart encourages its buyers and merchandise managers to stock stores with American-made products. 10) Environmental Concern: Environmental concerns are important to Wal-Mart. A prototype store was opened in Lawrence, Kansas, which was designed to be environmentally friendly. The store contains environmental education and recycling center. 11) Cost...
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